Amidst rumors that Ladbrokes has refused a GBP 4 million take-over bid by a private equity firm, and a "bidding war" is imminent, the Hilton owned company made a significant step forward in it's battle against European state-licensed betting monopolies.
Ladbrokes, one of the largest bookmakers in the U.K. and the operator of Ladbrokes Poker, the world's 8th largest poker room, applied for a betting license in Norway back in June 2004, only to see it rejected by the Norwegian government.
Ladbrokes filed suit against the Norwegian government soon after, claiming that it should be allowed to compete freely with the state-licensed monopoly under the principles of free and fair trade which are enshrined in the Treaty of Rome.
A court in Oslo has now referred the case to the EFTA Court in Luxembourg. The European Free Trade Association (EFTA) was established as an alternative for European states that were not allowed or did not wish to join the European Union. Currently Iceland, Liechtenstein, Norway and Switzerland are members of EFTA. The referral to the EFTA court means that the EFTA will now review the legality of the Norwegian Lottery Act, which is the basis for the current Norwegian state-licensed betting monopoly.
A spokesman for Ladbrokes commented: "By having the case referred to the EFTA Court we can expose the discrepancy between European law and national law. Betting is subject to free and fair competition under Article 49 of the Treaty of Rome in the same way as other goods and services."